HUD Mortgage Programs for Healthcare Facilities

Healthcare facilities provide a wide range of health and personal services for aging individuals or people with physical or mental conditions who need assistance. Typically, these individuals do not need full-time hospital care but require assistance with medications, household chores, physical mobility, and meal preparation.

Healthcare facilities are essential because they provide a better quality of life for the individuals who inhabit them and their family members who may be unable to provide daily assistance or lack the required medical skills to deliver adequate care.

Healthcare facilities eligible for this program can include:

  • Assisted Living – Facilities that combine housing, personalized supportive services, and health-related care for elderly people who need assistance with the activities of daily living while allowing residents to live as independently as possible.
  • Memory Care – Facilities for individuals with memory impairment diseases like Alzheimer’s or dementia who often need 24-hour medical care.
  • Skilled Nursing Homes – Facilities that provide 24-hour medical and nursing care for patients with chronic and short-term conditions who rely on assistance for most or all the activities of daily living.
  • Board and Care – Often referred to as group homes, these facilities typically have fewer than 20 residents. While they do not offer nursing or medical care, they often provide daily and personal care services such as bathing, medication management, and dressing.

Collectively, these healthcare facilities are often referred to as senior housing.

Healthcare Facilities
Residential Healthcare Facilities

The Benefits of FHA-Insured Mortgage Programs for Healthcare Facilities

To offset the costs of new construction, substantial rehabilitation, and ongoing maintenance of healthcare facilities, HUD provides several benefits to owners/operators, which may include:

  • Non-recourse loans to fund a wide range of properties.
  • Lower fixed interest rates, and longer, fully amortized terms translate to lower payments and greater cashflow.
  • Lower debt service coverage underwriting requirements.
  • Loans are fully or partially assumable, which can be attractive for sale opportunities or estate planning purposes.
  • Up to 35 years of fixed rate and fully amortizing for existing projects.
  • Up to 40 years of fixed-rate financing, plus construction time, for new construction or substantial rehabilitation.
  • Finance value-add and other capital expenditures.

FHA-Insured Mortgage Programs for Healthcare Facilities

Century Health & Housing Capital offers several FHA-insured mortgage programs for healthcare facilities, including: